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Chairman Calls Results of PECO’s Management Audit Unacceptable
The Pennsylvania Public Utilities Commission issued a Secretarial Letter regarding the management efficiency investigation of PECO Energy Company.
In the Secretarial letter the Commission indicates that it seeks “PECO’s further cooperation in implementing the recommendations cited in the Management Efficiency Investigation (MEI) report.
The Commission also “directs PECO to proceed with the February 20, 2026 Implementation Plan. The Commission’s direction to proceed with the Implementation Plan should not be construed as approval of the plan.”
Chairman DeFrank issued a statement regarding the management efficiency investigation of PECO Energy Company.
The chairman stated that “I also want to take this opportunity to highlight the significant concerns I have about several finding of the Management Efficiency Investigation and to urge PECO to take prompt action to address the customer service issues and to reduce the excessive employee overtime hours that underlie my concerns.”
“First, with respect to customer service, the Management Efficiency Investigation found thas customer service performance began to decline in 2024, after the then-newly implemented Customer Information System went online, and these performance issues still persist. (1) PECO’s Customer information System is causing a degradation in customer service performance metrics, and (2) PECO’s implementation of the new Customer Information System has led to challenges in addressing customers’ needs. I am concerned that PECO’s customer service performance began to decline in 2024, after the then-newly implemented Customer Information System went online, and these performance issues still persist.”
“Additionally, the Bureau of Audits observed multiple PECO inquiries where customers did not receive their bills regularly and had significant unpaid balances. Response times for high bill customer complaints rose from 10 days in 2021 to 27 days as of May 2025. As well, the Commission saw an increase in PECO customers filing informal complaints that the Company did not respond to in a timely manner.”
“I find these outcomes to be unacceptable.”
Finally, with respect to managing employee overtime, PECO Electric has not materially reduced overtime hours as previously recommended by the Bureau of Audits, . . . overtime hours per normal hours worked remain above 15%. I am alarmed that the Bureau of Audits review of PECO’s available fatigue reports indicated that certain employees were regularly working in excess 80-90 hours per week on average in a 29-day period, with some employees logging more than 200 hours per week. This too is unacceptable.”
Find audit documents at links below:
PECO 2025 MEI REPORT 3053971-AUD 031226PM
